Use Cash Machines (ATMs) once you arrive at your destination. It's important you research international transaction fees prior to arriving in Europe. Call your bank prior to departing the United States and find out which of your ATM cards will provide you with the lowest international transaction fee. Often times, your bank will have a list of European banks that they allow you to withdraw from free of charge. When you get off the plane, find your closest ATM with the lowest international transaction fee and withdraw the amount of cash you will need for your trip. Keep in mind cash is the best way to pay in Europe to avoid getting hit with international credit card fee's. Also, some hotels and hostels only accept payment in the form of the local currency so be sure you have enough money to cover your lodging. Beware if you use a credit card (rather than a debit card) at an ATM, it's considered a "cash advance" instead of a "withdrawal" and may be subject to an additional cash-advance fee.
Use credit cards as a back-up to cash. Your American credit cards are widely accepted throughout Europe, but use them with caution. You should call each credit card company individually to check on international transaction fees. If you plan on using your credit card for large purchases, use the card with the lowest transaction fee.
Do your research on travellers cheques. You'll get mixed reviews when researching travellers cheques in Europe. Many believe that it's the "safest" way to bring money overseas because they can be replaced if they are lost or stolen. But, others believe travellers cheques are outdated and hard to cash. Some European vendors do not accept them and require you to cash them at a bank. Also, the exchange rates are sometimes better on debit or credit card transactions than they are on travellers cheques. Whether or not you decide to bring travellers cheques with you on a trip is a matter of preference, but if you do decide to go that route be sure to write down the serial numbers and contact number for the issuer and keep them in a safe place just in case you need to report a lost or stolen cheque.
